The year 2025 brought a slowdown in price growth in the automotive insurance sector compared to previous years, although premiums continued to rise year-on-year. At the same time, distribution and product offerings further strengthened supplementary products linked to vehicle financing (e.g. GAP insurance) as well as the extended warranty segment, which, according to our data and market studies, has been showing long-term growth across Europe. A consistently positive trend is the development of claims frequency, i.e. the probability that an insured vehicle will generate a claim during the year. According to data from the Czech Insurers’ Bureau, claims frequency in the Czech Republic reached 5.6% in 2005, while in 2024 it stood at 3%. The data available so far for 2025 suggests a further decline. Rising vehicle prices, higher repair costs, and increasing technological complexity – particularly in hybrid and electric vehicles – are leading customers to seek stronger financial protection. At the same time, the market has undergone significant digitalization, with notable progress in online sales and claims handling.
Flexible solutions for a changing market
DEFEND INSURANCE GROUP (DIG) has responded with agility and a clear focus on specialty vehicle insurance solutions. We have innovated our GAP insurance offering with flexible solutions such as DEFEND Gap FLEX and “GO” variants, which can be arranged at any time from six months after vehicle purchase. We were also among the first to introduce extended warranty coverage for hybrid and electric drive trains. At the same time, we have developed specialized solutions for vehicle importers, inspectors, service centers and dealers, enabling the sale of warranties and other products directly at the point of service. We have also deepened cooperation with brokers and leasing partners, thereby strengthening DIG’s position as a long-term strategic partner. As part of the Fortegra Group, we have maintained our financial rating of A- (Excellent) and strengthened our presence through a permanent box in the Underwriting Room at Lloyd’s of London, further reinforcing the long-term trust of our partners.
Challenges for 2026: Electromobility, costs, and a newcompetitive model
The key challenges for 2026 will include continued pressure from rising vehicle repair costs, declining residual values of used cars, and the increasing complexity of servicing electric vehicles. Potential fluctuations in support for electromobility may slow the sales of new electric vehicles, which could impact residual values and the performance of GAP insurance. At the same time, the competitive landscape is being reshaped by the growth of so-called embedded insurance solutions, which are integrated into the purchase of other services. According to a study by Mordor Intelligence, this market in Europe is expected to reach USD 18.29 billion in gross written premiums by 2031, representing dramatic growth. DIG is well prepared for these challenges thanks to close cooperation with dealers, leasing companies and service networks, supported by data-driven underwriting and a strong focus on specialized, high-value products.
A digital ecosystem as the answer to the future
In 2026, DIG will continue building a fully digital insurance ecosystem. Partners and clients can look forward to online claims reporting, digital policy renewals, and a complete end-to-end customer journey. We will also introduce tools powered by artificial intelligence to support product selection and provide clear, understandable explanations. At the same time, we will expand our contracted service network and launch new products focused on electromobility, with particular emphasis on used electric vehicles and battery protection. Personally, I look forward to the further professionalization of the dealer and F&I market, where GAP insurance and extended warranties will become a standard part of every vehicle transaction. I am also pleased to see the simplification of specialty vehicle insurance for clients and the provision of more transparent, easy-to-understand protection.
About Bastiaan Brouns
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Bastiaan Brouns is the Managing Director of DEFEND INSURANCE GROUP (DIG), an international group specializing in innovative insurance solutions for passenger and commercial vehicles, including GAP insurance, extended warranties, and rental car insurance. DIG provides insurance coverage to more than one million clients across nine countries in Central and Eastern Europe. Since 2019, the Group has been part of the American insurance group Fortegra, which holds a prestigious A- (Excellent) rating from AM Best. In 2025, Fortegra announced an agreement to be acquired by the Korean insurer DB Insurance, rated A+ (Superior) by AM Best.
Bastiaan Brouns has more than 30 years of experience in managing and transforming international companies across Europe, particularly in the areas of B2B services and strategic development. He has long focused on building high-performing organizations, data-driven management, and the development of partner-based distribution models. He served for nearly five years as Director of the Netherlands–Czech Chamber of Commerce and is currently a member of its Board of Directors.
